Please ensure Javascript is enabled for purposes of website accessibility Shusterman’s lottery reform bill signed into law

Shusterman’s lottery reform bill signed into law

Act 37 will increase benefits for senior programs in Pennsylvania

Rep. Melissa Shusterman    July 22, 2025 | 9:28 AM

HARRISBURG, July 22 – State Rep. Melissa Shusterman, D-Chester, announced today that Gov. Josh Shapiro has signed her legislation making a key change to the state lottery to ensure its ability to fund programs that benefit Pennsylvania’s senior residents continues and expands.

Since 1971, the Pennsylvania Lottery has contributed more than $36.2 billion to benefit programs for the state’s senior citizens and those with disabilities. These include the Property Tax/Rent Rebate Program, free and reduced-fare transportation services, the low-cost prescription programs PACE and PACENET, care services and local services provided by the 52 Area Agencies on Aging.

Under current law, no less than 20% of revenue from the sale of lottery tickets or shares shall be dedicated to these two programs. Act 37 of 2025 lowers the profit margin to 10%.

Shusterman said this policy change will enable the lottery to focus on growing gross profits and not simply meet a high margin mandate. Most recently, the elimination of profit margin mandates in states like Texas, California and Oklahoma have led to record high profits and more money flowing into social programs. The seven states that rank above Pennsylvania in net profits do not have a profit margin mandate. The Lottery estimates this change will increase lottery profits to benefit senior programs by $1.2 billion over the next 10 years.

“This change will allow the Pennsylvania Lottery to more effectively compete with other forms of entertainment and put the lottery on better financial footing,” Shusterman said. “Reducing the profit margin ensures the continued health of the lottery, helping our aging population maintain their independence and quality of life.”

Shapiro signed the bill into law on Monday.